Ontario Exchanges Limit Altcoin Purchases To $30,000 US Per Year

For consumers in Ontario, the Canadian cryptocurrency exchanges Newton and Bitbuy are imposing an annual buy cap of CA$30,000 on the majority of cryptocurrencies.

According to Toronto-based Newton, the limit will apply to what it has termed restricted cryptocurrencies, according to the company’s FAQ.

Users will still be able to acquire Bitcoin, Ethereum, Litecoin, and Bitcoin Cash in an unlimited number of units.

Some restrictions apply

Users in the relevant provinces, however, will only be permitted to spend a total of CA$30,000 each year on prohibited cryptocurrencies. Newfoundland, Nova Scotia, Nunavut, the Northwest Territories, Ontario, Prince Edward Island, Saskatchewan, and the Yukon are among these provinces.

After that, users can sell restricted cryptocurrency to bring their balance closer to the cap, which is reset after a year.

Limits are not impacted by changes in the value of one or more crypto assets because they are determined based on the amount in Canadian dollars at the time of trade.

The Canadian Securities Administrators and the Ontario Securities Commission (OSC) have established certain restrictions (CSA).

Bitcoin in Canada – Ontario

Canada has seen a rise in the use, registration, and regulation of cryptocurrencies. A recent report from the Bank of Canada claims that from 5% in 2020 to 13% in 2021, there were twice as many Bitcoin owners.

The average amount of Bitcoin held was $500, and due to its high volatility, which prevents it from being used as a payment method, most owners use it for speculating.

In the midst of the excitement, the Canadian Securities Administrators (CSA) is now required that all cryptocurrency trading platforms accept specific terms prior to being allowed to operate in Canada.

Crypto.com signed a pre-registration undertaking with the OSC after the OSC issued the initial requirements for pre-registration of crypto asset trading platforms, making it the first cryptocurrency exchange to function under this law.

This was merely one of the recent worldwide approvals for the Singapore-based cryptocurrency network.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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